This section discusses several emerging retail payments
technologies that financial institutions are implementing or
considering. The success of emerging retail payment methods
depends upon four key drivers: reliability, cost,
convenience, and speed. In terms of the preferences by
consumers, merchants, and payment processors, the key drivers are
technological advances, convenience, and lower transaction
costs. The evolution of such preferences is facilitated by
traditional financial institution relationships and established
payments networks and infrastructure. Internet, mobile, and
contactless payments may be used alone or together to facilitate
electronic transactions, further reducing the use of paper
checks. The use of currency is expected to retain some appeal
because of its anonymity; however, the substitution of electronic
payment vehicles for cash micro payments (transactions under $5.00)
is expected to increase.

While the environment for emerging payments is highly dynamic,
the most important emerging payments today are electronic bill
presentment and payment (EBPP), P2P, A2A, and stored-value
instruments. Several more recent emerging payment mechanisms
are contactless payments, biometrics, and proximity payments as
well as the format and transmission mechanics used to effect these
payments.